The move is part of the company’s broader strategy to address rising end-user demand in suburban and next-wave cities amid the national housing shortfall via fast-growing real estate subsidiary, PH1 World Developers .
Management’s view
“There’s much to look forward to in the years ahead, as we continue to anchor on our engineering and construction DNA, coupled with our pre-cast and construction solutions advantage, to drive our forward integration into scalable and responsive business platforms, such as our foray into real estate development,” said Saavedra, the chair and CEO of Megawide.
“Against the backdrop of a national housing crisis, we believe there are significant opportunities in the local real estate space, especially end-user demand in the affordable and socialized housing segments in next wave cities and suburban areas outside of Metro Manila,” he added.
Investor confidence runs high
The offering was oversubscribed by 1.7 times, reflecting strong investor support for Megawide’s pivot into real estate while leveraging its construction and pre-cast expertise.
“The result of the offer also suggested a strong vote of confidence in Megawide’s financial health, strategic initiatives, and overall long-term prospects. We were happy to have taken part in this journey,” said Gerry Valenciano, president of PNB Capital and Investment Corp.
A large share of subscriptions went to the longer-term Series 6C tranche, indicating investor appetite for Megawide’s long-range plans.
The offer was split into Series 6A (P1.78 billion), Series 6B (P1.19 billion), and Series 6C (P2.3 billion), with all segments fully allocated.
Balancing growth
The capital injection strengthens Megawide’s bid to become a key player in housing, complementing its existing infrastructure and commercial project portfolio.
The company closed 2024 with an order book of P43.5 billion, boosted by P17.2 billion worth of new contracts signed during the year.
The offer was managed by PNB Capital, RCBC Capital, and SB Capital, who served as joint issue managers, lead underwriters, and bookrunners.
